The purpose of this study is to determine in subjects with Type II DM receiving combination oral hypoglycemic agents with an Hba1c >8%, whether add-on therapy with inhaled insulin significantly improves glycemic control as compared with continued oral agent therapy alone or whether monotherapy with inhaled insulin significantly improves glycemic control as compared with continued oral agent therapy alone.The toleration and safety of inhaled insulin therapy and its effects after 3 months, if any, on measures of pulmonary function.